ENA State 2024-06-10 16:31:46 <p><span style="font-size:14px"><strong>Mumbai, Jun 10 (KNN)</strong> The Maharashtra government has announced a reduction in the Value Added Tax (VAT) on aviation turbine fuel (ATF) or jet fuel from 25 per cent to 18 per cent.</span></p> <p><span style="font-size:14px">This move aims to ease the financial burden on airlines and foster growth in the civil aviation sector within the state.</span></p> <p><span style="font-size:14px">Jet fuel constitutes a significant portion of operational costs for airlines globally, accounting for around 18-19 per cent of total expenses.</span></p> <p><span style="font-size:14px">However, for Indian carriers, this figure is much higher at approximately 40 per cent. The high taxation on ATF has been a longstanding grievance voiced by the aviation industry.</span></p> <p><span style="font-size:14px">Maharashtra, being the most industrialised state with major aviation hubs like Mumbai and Pune, plays a pivotal role in the country's air traffic.</span></p> <p><span style="font-size:14px">Mumbai alone handled 14 per cent of India's international and domestic air traffic in 2023.</span></p> <p><span style="font-size:14px">The reduced VAT on jet fuel is expected to provide relief to airlines operating in the state, potentially leading to lower ticket prices for customers.</span></p> <p><span style="font-size:14px">This aligns with the central government's objective of making air travel more affordable for the masses.</span></p> <p><span style="font-size:14px">Aviation stakeholders have welcomed the decision, anticipating that the tax cut will enhance the competitiveness of the sector and spur further growth in air connectivity within and beyond Maharashtra.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 38143 https://knnindia.co.in/news/newsdetails/state/maharashtra-slashes-jet-fuel-tax-to-boost-aviation-industry 2024-06-10 16:31:46 knnindia.co.in